Marijuana MSO TerrAscend completes $79 million in debt financing

Marijuana multistate operator TerrAscend Corp. has completed $79 million in debt financing as it exits the Michigan market.

According to a Wednesday news release, $69 million of the loan was used to retire existing debt, with the remainder to be used for future growth initiatives.

The loan, led by New York-based FocusGrowth Asset Management, has a 12.75% interest rate and matures in August 2028.

“This loan extends the vast majority of our debt until late 2028 and provides additional capital to execute on our growth initiatives, including M&A,” TerrAscend Executive Chair Jason Wild said in a statement.

“This transaction reflects FocusGrowth’s confidence in the company’s vision and strategy.”

Earlier this month, TerrAscend, which has offices in New York and Toronto, said it is pulling out of the Michigan market.

After completing a review of its business operations in Michigan, the company said it plans to sell or divest all of its assets in the state, including real estate, 20 stores and four cultivation and processing facilities.

The company went on an acquisition spree in Michigan in 2021 and 2022, acquiring a six-store chain for $28.5 million in a move that expanded its operation in the state to 17 medical and adult-use marijuana outlets.

Shares of TerrAscend trade as TSND on the Toronto Stock Exchange.